On January $1,20$X$2$ P pays $$100$ million to acquire $50,000$ of the common voting shares of S$,$

which gives P a $25\%$ ownership interest in S$.$ The January $1,20$X$2$ book value of S$\text{'}$s assets is $$700$

million and its liabilities is $$400$ million. The January $1,20$X$2$ fair value of S$\text{'}$s assets is $$800$

million and its liabilities is $$400$ million. During $20$X$2,$ S records income of $$40$ million and pays

dividends of $$12$ million, and its December $31,20$X$2$ book value of assets net of liabilities is $$328$

million. P uses the equity method of accounting for its investment in S and amortizes any fair value

increments on a straight$-$line basis over five years.

$5.$ How much income would P record in $20$X$2$ from its investment in S$?($Your answer should be

in millions. Hence, if your answer is $$50$ million, your answer would be $50.)$

$6.$ What would be P$\text{'}$s December $31,20$X$2$ balance for its equity investment in S$?($Your answer

should be in millions. Hence, if your answer is $$50$ million, your answer would be $50.$